In the run-up to a wedding and even during the more blissful years, divorce, or the possibility thereof, is likely the last thing on a person’s mind. However, the reality is that, in the United States, 52 percent of first marriages end up in the divorce courts. When getting married for a second or third time, the chance that a person will end up divorcing increases to 70 percent or more. Therefore, Arizona business owners may want to at least consider the possibility of divorce when they think about getting married.
It is true that divorce does not have to mean the end of a business. Hopefully the spouse of a successful business owner will realize that a successful business guarantees regular income. To the other side, a successful, privately owned business will form a large part of the marital assets. Thus, the business would automatically become a part of the assets to be divided if nothing has been done to avoid such a situation.
Of course, precautions can be taken to avoid losing your business in a divorce, or even worse — being stuck with a business partner you have just divorced. This can either be done by a prenuptial, post-nuptial agreement or a buy/sell agreement. A business owner must also ensure that he or she becomes a salary receiving employee of the business.
Arizona business owners who have not ensured the continued existence of their business when divorcing may find themselves in a quandary. In such an instance, it would be wise to obtain legal advice on how to protect one’s business. All is not lost in this situation, and there are legal ways in which business owners can ensure that they do not lose their businesses during a divorce, while protecting the interests of both spouses at the same time. One thing is for sure, divorce does not have to mean the end of a business.
Contact Our Phoenix Divorce Attorneys
Regardless how complicated your case may seem, our Phoenix divorce attorneys can help. Call the Law Offices of Janice M. Palmer, P.C. at (480) 820-4771 or toll-free at (888) 352-7725 for a consultation.
Source: bizjournals.com, How to divorce-proof your business, Rosemary Frank, March 2, 2014